Annual report pursuant to Section 13 and 15(d)

15. Notes Payable-Related Parties

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15. Notes Payable-Related Parties
12 Months Ended
Dec. 31, 2015
Pro forma financial information  
15. Notes Payable-Related Parties

At December 31, 2015 and 2014, components of notes payable – related parties are comprised of the following: 

 

    December 31,     December 31,  
    2015     2014  
             
Notes payable to Marvin Rosen   $ 1,178,081     $ 1,478,081  
Discount on note     (103,252 )     (185,203 )
Total notes payable - related parties   $ 1,074,829     $ 1,292,878  

 

The note payable to Marvin Rosen, the Company’s Chairman of the Board, is subordinated to borrowings under the Amended Credit Facility and the Fourth Amended SPA.  This note is unsecured, pays interest monthly at an annual rate of 7%, and matures 120 days after the Company’s obligations under the Amended Credit Facility and the Fourth Amended SPA are paid in full.  

 

For the year ended December 31, 2015, the Company recognized interest expense on the Rosen note of approximately $105,000 (paid $97,000), and amortization on the discount of approximately $82,000.

 

During the year ended December 31, 2015, Mr. Rosen converted $0.3 million of the Rosen Note into 137,615 shares of Fusion’s common stock at conversion price of $2.18 per share of common stock, the closing bid price of our common stock on December 4, 2015.